SIX Swiss Exchange conducted a market consultation on the regulations governing the SMI. It revealed that issuers of financial products and users of index derivatives in particular were in favor of introducing a change in the SMI's methodology that would involve the capping of the weighting of the largest shares. Shares with weightings in excess of 18% of the SMI are now to be capped at 18% at the quarterly index reviews. As soon as the weightings of two shares in the index exceed 20%, they will be reduced to 18% during the index reviews. The amendment to the regulations will enter into effect on 18 September 2017 and be applied subject to transitional provisions. These provide for a gradual reduction in the weightings of the largest index components: they will be reduced by 3% each quarter until reaching a maximum of 18% of the SMI.
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